Daily Investment Interpretations

November 2, 2011

2011-11-2: (Wednesday Night): U. S. stock market indices regrouped today: Stocks halt two-day rout, Stocks Bounce Back; Bernanke Soothes EU JittersThe NASDAQ Composite regained  33.02 points (1.27%) points  to close at 2,639.98. The Dow rocketed  178.08 points (1.53%) to 11.836.04; the S&P 500 surged 19.62 points (1.61%) to settle at 1,218.29. Oil slipped again to 93.00 gold rose to 1,741. The VIX dropped 2.04 points to 32.74.
    The European Union's response to Greek premier George Papandreou's decision to refer the EU rescue plan to plebiscite was swift and sharp: IMF Warns Next Tranche of Greek Aid Won’t Come Before Referendum, G-20 Official: All Aid To Greece Frozen Until Referendum
. Of course, I haven't a clue regarding what's really going on with Greece and the EU. It's easy to fault Premier Papandreou, but who knows what it looks like from where he sits? We'll probably find out over the next few days. It wouldn't be the first time that a Very Important Person has made wild misjudgments, but this may or may not be one of them.
    Private-sector payrolls up 110,000 in October
    Earnings trump consumers' mood  
    Bernanke: Maybe in 2013 (video)  Ben Bernanke says that rates won't be raised before mid-2013 (a little over a year-and-a-half from now).
    Mark Hulbert writes about A stock market versus a market of stocks,   
    7 billion reasons markets will change direction This good article by Matthew Lynn talks about long-term shifts from the West to Asia, South America, and other emerging markets. Mr. Lynn cites five trends that he thinks will unfold over the next twenty or thirty years.
    Let them eat baklava!  Brett Arends exclaims in disgust that the European Union ought to let Greece exit from the EU, and ought to let the Greeks stew in their own juices. (Unfortunately, French organizations hold large positions in Greek debt.)
    Concern emerges over latest IMF tranche  
    Mideast economies as next concern  
    Global manufacturing stagnates in October  
    State of the Markets contributions for today include:  
    Technical Talk: High Frequency Trading Makes the Game Harder But...  This article, by David Moenning, expresses his frustration over the headline-driven high-frequency trading that drives the markets willy- nilly aimless, like tail-less kites. He explains elsewhere that you have to have a supercomputer, a technical staff of Ivy-League Ph. D. "quants", and an address near the New York Stock Exchange to play the high-frequency trading game.    
    Fed Says Economy "Strengthened Somewhat" in Q3; Makes No Changes to Policy   
    Fed Revises Economic Projections Downward 
    Rates Continue to Rise at Portugal's T-Bill Auction  
    ADP Employment Report Shows Private Sector Added 110K Jobs in October
    National Association of Active Investment Managers Survey Shows Active Managers Have Remained Cautious  
    Market futures are down more than 1 % tonight. Things look dour.